LERTA Opportunities

A Creative Way to Implement Strategic Financial Opportunities

The Local Economic Revitalization Tax Assistance (LERTA) Act, Act 76 of 1977, P.L. 237; 72 P.S. § 4722, is a creative way to implement strategic financial opportunities for communities that desire property owner driven revitalization. Many Pennsylvania municipalities have developed a LERTA program for their communities to encourage this beneficial reinvestment. Municipalities that have LERTA sites grant property owners a tax incentive to improve their properties within an area designated for revitalization.

The geographic boundaries of Westmoreland County’s LERTA opportunities include areas in North Huntingdon, Penn, South Huntingdon and Unity Townships.

While the specific terms of the tax abatement is decided at the local level, the state enabling legislation allows municipalities to exempt the value of all improvements made to a property (i.e., an exemption on the assessment attributable to the actual cost of such new construction or improvements) from local taxes for a certain period of time not to exceed ten (10) years. Unlike other tax abatement programs, properties still pay a local tax, but do not see any increase in local taxes upon the value of renovations made to the property within the LERTA boundary (a property owner is still obligated to pay property taxes on the assessed value of the land).

Specific terms of the abatement incentive for each participating municipality in Westmoreland are as follows: